Feasibility Study On The Transformation Of Nonprofit Organization To Social Enterprises

The design of the incentive model is an important part of compensation management and the focus of researchers and practitioners also. With the function of nonprofit organizations increasing in modern society, and the particularity of human resources of nonprofit organization, the incentive mechanism is also attracted widespread attention of scholars of the world. In the recent ten years, due to changes in the world economy and the national financial crisis, the financial difficulties have appeared in the nonprofit organizations. In this case, social enterprises emerge with the feature of social and enterprise. Social enterprises can operate independently and solve social problems difficult to solve. Therefore, more and more nonprofit organizations began to follow the social enterprise with the expectation of transform. However, because of the lack of feasible strategic measures, financial goals and social goals of organizations are difficult to coordinate, many nonprofit organizations is facing the transition difficult. Considering the growth of nonprofit organization, many occupation managers have joined the organization. It is very importance and necessity to design compensation incentive for the operators. This paper build executive incentive model of nonprofit organizations and social enterprises, and compare the incentive effect. Expect to provide basic theory to the transformation.Firstly, based on the above considerations, analysis and summarize previous research literature on executive incentive of nonprofit organization and social enterprise. Then summarize and contrast the definition, objectives and performance of nonprofit organizations and social enterprises. Finally, build incentive model. Firstly, based on previous research, the maximization of social performance will be the optimization object, and combine with the monetary compensation and non-monetary incentive, get the executive incentive model of non-profit organization, then draw the conclusion according to the results. Reference executive incentive model of enterprise and non-profit organization, social performance and financial sustainability of social enterprise as a double target of manager, combined with the monetary compensation and non-monetary incentive, get the executive incentive model of social enterprise, then draw the conclusion according to the results. Finally, compare the effort level of the managers in nonprofit organization and social enterprise under same conditions, and analyze the incentive effect. The model results indicated:under certain situation, the effort level of the managers in social enterprise is greater than what in nonprofit organization.This paper makes some important suggestions to optimize the executive incentive mechanism of nonprofit and social enterprise and transformation according to the results, then conclude the major work, point out the creativity and limitations, and put forward the future research prospect.